2018 (2) TMI 1974

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....to Rs. 12,50,000/- u/s 14A. 2. On the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs. 22,87,000/- made by A.O on account of disallowance of interest expenses u/s 36(1)(iii) of the IT Act." 3. Assessee is a Non Banking Financial Corporation (NBFC). Assessee filed its return of income declaring income of Rs. 59,33,81,810/- under normal provision of law and Rs. 58,78,76,494/- under Section 115JB of the Income Tax Act, 1961. The Return was processed u/s 143(1) of the Act. Case was selected for scrutiny and accordingly, notice u/s 143(2) & 142(1) was issued. The Authorised Representative of the assessee attended the hearing and submitted the documents. During the assessment proc....

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....ppeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. DR submitted that the CIT(A) erred in restricting the disallowance of Rs. 53,49,000/- made by Assessing Officer to Rs. 12,50,000/- u/s 14A and also in deleting the addition of Rs. 22,87,000/- made by the Assessing Officer on account of disallowance of interest expenses u/s 36(1) (iii) of the Act. The DR relied upon the Assessment Order. 6. The Ld. AR submitted that the CIT(A) after categorical finding has partly allowed the claim of the assessee. 7. We have heard both the parties and perused the material available on record. As relates to ground no. 1, the CIT(A) held as under:- "6.12. The appellant has stated that all the scripts are....

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....r section 36(l)(iii): "36. Other deductions.-(1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28- (ii) the amount of the interest paid in respect of capital borrowed for the purposes of the business or profession *' Provided that any amount of the interest paid, in respect of capital borrowed for acquisition of an asset for extension of existing business or profession (whether capitalized in the books of account or not) ; for any period beginning from the date on which the capital was borrowed for acquisition of the asset till the date on which such asset was first put to use, shall not be allo....